Troubled Company Prospector

Troubled Company Prospector

Large Companies Triggering Warnings of Financial Strain

August 6, 2018 Volume 26, Number 32 Prospector Profiles in this Issue

Company Name

1141 Realty Owner LLC Aegerion Pharmaceuticals, Inc. AGFC Capital Trust I AIS HoldCo, LLC AIS HoldCo, LLC Aleris International, Inc. Alpha Media LLC American Midstream Partners, LP American Tire Distributors Inc. APX Group Holdings Inc. APX Group Holdings Inc. APX Group Holdings Inc. Barbetta, LLC Bellatrix Exploration Ltd. BioScrip, Inc. BMC Software, Inc Brookstone Holdings Corp. CD&R Hydra Buyer Inc. Chesapeake Energy Corporation Chesapeake Energy Corporation Chukchansi Economic Development Authority Community Choice Financial Inc. Community Health Systems, Inc. Dynatrace Intermediate, LLC Egalet Corporation Emergent Capital, Inc. Falls at McMinnville, LLC Fresh Market, Inc. Heritage Home Group LLC iHeartCommunications Inc. Kenan Advantage Group, Inc. LTI Holdings, Inc. LTI Holdings, Inc. Martin Midstream Partners L.P. Mashantucket (Western) Pequot Tribal Nation Mattel, Inc. McClatchy Company Mood Media Borrower, LLC Ocwen Financial Corporation PaperWorks Industries, Inc. Pernix Therapeutics Holdings, Inc. PetroChoice Holdings, Inc. Petroquest Energy Inc. Pioneer Energy Services Corp.

Reference Number

Category Profile

18.1389 18.1390 18.1391 18.1392 18.1393 18.1394 18.1395 18.1396 18.1397 18.1398 18.1399 18.1400 18.1401 18.1402 18.1403 18.1404 18.1405 18.1406 18.1407 18.1408 18.1409 18.1410 18.1411 18.1412 18.1413 18.1414 18.1415 18.1416 18.1417 18.1418 18.1419 18.1420 18.1421 18.1422 18.1423 18.1424 18.1425 18.1426 18.1427 18.1428 18.1429 18.1430 18.1431 18.1432

Bankruptcy Debt at Deep Discount Low Rating Low Rating Low Rating Low Rating Low Rating Low Rating Debt at Deep Discount Low Rating Low Rating Low Rating Bankruptcy Low Rating Low Rating Low Rating Bankruptcy Low Rating Low Rating Low Rating Debt at Deep Discount Debt at Deep Discount Loss/Deficit Low Rating Debt at Deep Discount Debt at Deep Discount Bankruptcy Low Rating Bankruptcy Debt at Deep Discount Low Rating Low Rating Low Rating Low Rating Debt at Deep Discount Low Rating Loss/Deficit Low Rating Low Rating Debt at Deep Discount Debt at Deep Discount Low Rating Debt at Deep Discount Loss/Deficit

(Click on Reference Number to go directly to Company Profile)

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Company Name

Reference Number

Profile Category

Polymer Additives, Inc. Rex Energy Corporation Sable Permian Resources, LLC Sears Holdings Corporation SIRVA, Inc. Southcross Energy Partners, L.P. Southcross Energy Partners, L.P. STS Operating, Inc. SuperMoose Newco, Inc. Transworld Systems Inc. Veritext Corp. Westmoreland Coal Co.

18.1433 18.1434 18.1435 18.1436 18.1437 18.1438 18.1439 18.1440 18.1441 18.1442 18.1443 18.1444

Low Rating Debt at Deep Discount Low Rating Debt at Deep Discount Low Rating Low Rating Low Rating Low Rating Low Rating Debt at Deep Discount Low Rating Debt at Deep Discount

(Click on Reference Number to go directly to Company Profile)

Troubled Company Prospector identifies and profiles United States and Canadian companies with assets of $10 million or more showing early signs of strain or difficulty. Designed to support the niche marketing programs of professional firms, the Prospector features companies that meet strictly defined predetermined criteria. Information is compiled weekly and the Prospector is distributed by e-mail to arrive before 9:00 a.m. every Monday. For each business identified, the Prospector provides the trigger event and enough information to assess the prospect and pursue any opportunities. The Troubled Company Prospector is published by Beard Group, Inc. ().

DISCLAIMER: The conditions for inclusion in Troubled Company Prospector are selected by the editors because, in their opinion, the occurrence of such an event or the existence of such a circumstance is a likely indicator of current or prospective financial or operating difficulty. There are, however, other reasons why such facts or circumstances may exist. The inclusion of a profile suggest the possibility of financial distress or the possibility that the company may be of interest to workout professionals for some other reason. Inclusion should not be construed to represent analysis of the condition of the company or a definitive determination that the company is in difficulty.

ACCURACY & COVERAGE: The information contained in Troubled Company Prospector is based on data supplied by various sources. All published information is believed to be reliable. However, the accuracy of most data cannot be verified prior to publication, and the information is not guaranteed. Desired information is often incomplete, inaccurate, delayed or unavailable. Do not rely on Troubled Company Prospector without independent verification.

SUBSCRIPTIONS: Subscription rate: $775 for six months, payable in advance. All additional e-mail addresses are $25 each. All subscriptions entered are continued until canceled. For subscription information send an e-mail message to subscriptions@ or call Joseph S. Cardillo at (856) 381-8268 or Peter A. Chapman at (215) 945-7000.

Troubled Company Prospector is published by Beard Group, Inc., P.O. Box 40915, Washington, D.C. 20016, ISSN 1062-2330. Copyright 2018. All rights reserverd.

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Prospector Profile Categories In order to appear in Troubled Company Prospector a company must meet one of the conditions listed below. In many cases, when a profiled company meets another condition, it will appear in the Prospector again. However, once a company files for bankruptcy, it will not appear again even if a new condition applies at a later date. 1. Bankruptcy. The company files a voluntary Chapter 11, Chapter 7 or Chapter 15 petition. 2. Involuntary Petition. An involuntary bankruptcy petition is filed against the company. 3. Default. A significant event of default is reported with respect to a company's obligations. Usually this will be a default in payment of principal or interest on debt. 4. Distressed Exchange Offer. The company announces an exchange or tender offer for outstanding debt or preferred stock at a significant discount from face value. 5. Preferred Dividend Omission. The company omits the dividend on its preferred stock. 6. Restructuring. The company proposes a significant restructuring of its obligations. 7. Debt at Deep Discount. The company's public debt trades with a current yield or yield-to-maturity in excess of the lower of 18% or eight points over the long-term treasury bond rate. 8. Low Rating. The company's public debt is downgraded (or new rating is set) by a major rating agency to or below a level indicating a "current vulnerability to default," such as Standard & Poor's CCC rating. 9. Audit Concerns. The company's auditor, (i) qualify their opinion on its financial statements in a manner that indicates doubt about its ability to continue as a going concern, (ii) resign or (iii) take other action that indicates possible concerns. 10. Covenant Problems. The company violates or indicates that it is likely to violate covenants in its debt agreements. 11. Loss/Deficit. The company reports a significant quarterly or year-end loss, equity deficit, or strained liquidity. 12. Miscellaneous. Some other event occurs or is reported which, in the opinion of the editors, indicates that the company may be in or approaching financial distress or otherwise raises doubts about the future prospects of the company.

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Troubled Company Prospector

August 6, 2018

1141 Realty Owner LLC 9 W. 26th Street New York, NY 10010

NAICS

721110

Prospector Profile

18.1389

Category: Bankruptcy Event: 1141 Realty Owner LLC and its debtor-affiliate Flatironhotel Operations LLC filed for Chapter 11 protection on July 31, 2018, with the U.S. Bankruptcy Court for the Southern District of New York (Manhattan), case numbers 18-12341 and 18-12342 respectively, before Judge Stuart M. Bernstein.

Description: 1141 Realty Owner LLC is the fee owner of the Flatiron Hotel, a 62-room boutique hotel located at 9 West 26th Street a/k/a 1141 Broadway in New York, New York. Flatironhotel Operations' only significant assets are the liquor licenses for the restaurant facilities within the Hotel.

Officers: Jagdish Vaswani (Managing Member) Attorneys: Tracy L. Klestadt, Esq., and Joseph C. Corneau, Esq., at Klestadt Winters Jureller Southard & Etevens, LLP; New York, NY; (212) 972-3000; jcorneau@

Estimated Assets: $10 million to $50 million Estimated Liabilities: $10 million to $50 million Notes: Full-text copies of the petitions are available for free at: and

Prospector Profile Categories and data qualification

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Troubled Company Prospector

August 6, 2018

Aegerion Pharmaceuticals, Inc. One Main Street Suite 800 Cambridge, MA 02142 (617) 500-7867

NAICS

325412

Employees 240

Prospector Profile

18.1390

Category: Debt at Deep Discount Event: Aegerion Pharmaceuticals, Inc.'s 2.0% bonds due Aug. 15, 2019, traded in the secondary market at 72.25 cents-on-the-dollar for the week July 23, 2018 to July 27, 2018.

Description: Aegerion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the development and commercialization of therapies for patients with debilitating rare diseases. Aegerion Pharmaceuticals, Inc., is a subsidiary of Novelion Therapeutics Inc.

Officers: Barbara Y. Chan (Pres. & Chief Accounting Officer); Remi A. Menes (Chief Commercial Officer); Dr. John J. Orloff (EVP & Head of R&D)

Prospector Profile Categories and data qualification

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Troubled Company Prospector

August 6, 2018

AGFC Capital Trust I 601 NW Second Street Evansville, IN 47708 (812) 424-8031

NAICS

522292

Prospector Profile

18.1391

Category: Low Rating

Event: S&P Global Ratings upgraded OneMain Holdings Inc., OneMain Financial Holdings LLC, and Springleaf Finance Corp. to 'B+' from 'B'. The outlook on these entities is positive.

At the same time, S&P also raised the issue ratings on Springleaf Finance Corp.'s senior unsecured debt to 'B+' and AGFC Capital Trust preferred stock to 'CCC+'. Subsequently, S&P withdrew its ratings on OneMain Financial Holdings LLC at the issuer's request because its last remaining bonds have been paid off and the company does not intend to issue new ones.

The upgrade reflects that OneMain Holdings Inc. is deleveraging and has maintained net charge-offs within expectations, as well as a well-diversified funding profile. For year-end 2018, S&P expect debt to adjusted total equity (ATE) to be 5.5x-6.0x compared with 7.1x as of year-end 2017. S&P expect leverage to continue to decline as earnings bolster equity. The management team is targeting leverage (using a different metric than its debt to ATE measure, debt to tangible equity) of 7.0x by the end of 2018, a level S&P view as feasible.

Description: AGFC Capital Trust I operates as a special purpose entity. The Company was formed for the purpose of issuing debt securities to repay existing credit facilities, refinance indebtedness, and for acquisition purposes on behalf of Springleaf Finance Corporation (SFC).

Notes: Update of Volume 26, Number 20 - TCP180514

Prospector Profile Categories and data qualification

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Troubled Company Prospector

August 6, 2018

AIS HoldCo, LLC 424 Crofton Park Lane Franklin, TN 37069 (615) 586-0163

NAICS

561990

Prospector Profile

18.1392

Category: Low Rating

Event: Moody's Investors Service has assigned a B3 corporate family rating and B3-PD probability of default rating to AIS HoldCo, LLC (together with its affiliates, AIS), an insurance broker that offers simplified, limited-underwriting insurance products. Moody's also assigned ratings to new credit facilities that AIS is issuing in connection with a pending buyout of the company sponsored by private equity firm Mill Point Capital. The financing arrangement includes first-lien credit facilities rated B2 and a second-lien credit facility rated Caa2. Proceeds from the offering, plus an equity contribution from Mill Point Capital, will fund the purchase of AIS from Affinion Group, Inc. (Affinion). The parties expect the transaction to close in the third quarter of 2018, subject to customary closing conditions and regulatory approvals. The rating outlook for AIS is stable.

According to Moody's AIS's ratings reflect its position as a leading distributor of accidental death and dismemberment (AD&D) policies and hospital accident plans primarily to customers of banks and credit unions. The company has generated good EBITDA margins and healthy cash flows historically as part of Affinion, although revenue growth was constrained in recent years. The company has a relatively stable revenue base and a good opportunity for organic growth as the company expands its marketing spend.

Description: AIS HoldCo, LLC, is a third-party broker, administrator and marketer of simplified, guaranteed-issue insurance products on behalf of credit unions and regional/national banks.

Securities: $25 million senior secured first-lien revolving credit facility due 2023; $315 million senior secured first-lien term loan due 2025; $110 million senior secured second-lien term loan due 2026.

Prospector Profile Categories and data qualification

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Troubled Company Prospector

August 6, 2018

AIS HoldCo, LLC 424 Crofton Park Lane Franklin, TN 37069 (615) 586-0163

NAICS

561990

Prospector Profile

18.1393

Category: Low Rating

Event: S&P Global Ratings assigned its 'B' long-term issuer credit rating to business services platform company, AIS HoldCo LLC (AIS). The outlook is stable. At the same time, S&P assigned a 'B' debt rating to the company's $25 million revolving credit facility due 2023 and its $315 million first-lien term loan due 2025. The recovery rating is '3', indicating S&P's expectation for meaningful recovery (50%-70%; rounded estimate: 60%) in the event of a payment default. S&P is also assigning a 'CCC+' debt rating to the company's $110 million second-lien term loan with a recovery rating of '6', indicating S&P's expectation for a 0% recovery.

The 'B' issuer credit rating on AIS reflects S&P's assessment of the company's weak business risk profile and highly leveraged financial risk profile. AIS is a business-services platform with expertise in the distribution, marketing, and administration of a range of simplified, limited-underwriting insurance products. On July 3, Mill Point Capital entered a definitive agreement to purchase AIS from Affinion Group Holdings Inc.

The stable outlook on AIS reflects S&P's view that the company will generate operating results and credit metrics consistent with its expectations and S&P's belief that the company will be successful at transitioning to a stand-alone entity. S&P expects the company to delever gradually based on debt repayments through the mandatory cash flow sweep. S&P is forecasting the debt-to-EBITDA ratio improving to around 5.5x over the next year.

S&P may lower its rating in the next 12 months if AIS' EBITDA margins decline further than expected due to increased costs associated with marketing efforts and building out stand-alone platforms, or the company were to experience a significant decline in revenue resulting from a loss of one or more key clients, resulting in leverage above 7x or coverage below 2x. Description: AIS HoldCo, LLC, is a third-party broker, administrator and marketer of simplified, guaranteed-issue insurance products on behalf of credit unions and regional/national banks.

Securities: $25 million senior secured first-lien revolving credit facility due 2023; $315 million senior secured first-lien term loan due 2025; $110 million senior secured second-lien term loan due 2026.

Prospector Profile Categories and data qualification

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